Anyone have any input on this scenario?
A collection agency in Texas bought an account from an OC. This CA (Sherman) is not bonded in Texas, and therefore cannot collect on the debt. As soon as they know that you know they are not allowed to collect, they assign the debt to another CA that is legally able to collect (Capital Management).
Now that Sherman is the “OC” to the new, legal CA, can this new CA collect on the debt? Since Sherman was not bonded is now the OC, they are still not legally allowed to do business in there state, so I would think this debt would not be valid unless it was sold to another CA, not just assigned.
Sherman received my DV letter and in it I told them I knew they were not bonded and demanded deletion. Two days after Sherman received this letter I received a call from Capital Management demanding payment for this account from Sherman. Sherman was removed from at least one of the CRAs today.
First off, they never sent me the normal letter that I have 30 days to dispute validity, is this not a violation that they attempted collection skipping this step? I also don’t see how Sherman could assign this debt to another collection agency, being they are not legally allowed to do business as a CA.
Thanks!
I see your point. How can a illegal company sell a questionable debt to a company that is registered?
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By the way, I received a certificate of no bond from state of Texas. According to them, they never had a bond in the state for collections. Anyone who has Sherman on their reports has an easy way to get rid of them with this.
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bump
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Sherman can never be the original collector. They are a Collection Agency. Read the FDCPA for more information.
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So, for my own knowledge...would it have been better to pay off Sherman, and then dispute the listing? It would have had to have come off since it was theirs...is my understanding of this correct?
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I would never pay Sherman a dime especially since they are operationg an illegal collection agency in the State of Texas...I would have send a validation letter to sherman...(they would not answer it anyway)...once a received the green card from that I would dispute with the CRA. If it comes back as verifed then you have some options...sue the CA or go for the deletion with the CRA.
Remember (read the FDCPA) a CA can never be the OC even if they keep selling the alleged debt to one another. The validation information must come from the OC. If you are dealing with Sherman...you will probably never get it.
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Well, I sent Sherman a DV letter, and a couple of days after they received it, I got a call from another CA which is legal, collecting on Sherman's behalf. Since Sherman now owns this debt (bought it from real OC) can they really assign it to another CA to collect on it, when they are not legal to begin with?
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I am intersted also in this question. I have at least 3 CAs who are not legal in TX and I had thought about the CAs selling the account to one who is legal. I understand that a CA cannot be an OC, but can 2 CAs work together to collect a common debt?
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i'm having the same problem with sherman... they sold my account to northland...
anyone know the legalities of that?
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Not looking for legal advise; just an opinion or two. I guess this is a tough question...
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not tough questions...they can indeed sell or assign the debt but the collection agencies can never be the OC. Since validation information can only come from the OC it would not matter who Sherman assigned it to. Ask for the validation. You probably would not get anything.
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How should I proceed? I sent a DV letter to Sherman (the 30 day period is not up yet.) They did delete the account from EQ, but they updated with EX (I think they are still adding interest to the amount. :? ) After the 30 period is up, what is the next step. I do have the certificate stating that Sherman is illegal in Texas. I figured I'd send a strongly worded letter pointing out all of their violations.
Also, Sherman assigned this account to a legal CA. Is that CA held accountable in any way for accepting the debt from a CA collecting illegally? :?
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Thanks Capn. I got the green card back and immediately disputed with the CRAs. I'll definately follow through and send a letter to EX.
The new CA is Superior Asset Management, Inc. I checked and they are legal in Florida. The letter that they sent to me states "Thie letter has been sent to you by Superior Asset Management, Inc, a collection agency for Sherman Acquisition, LP..."